Hi Andrew, I am not saying anything about what the government has said for a fact or that I have knowledge of. All I am saying is that the BREE numbers tell me they are not numbers plucked out of a hat.
Australia has a massive bugdet black hole and worsening and in structural economic decline. The last thing Canberra will allow is for precious finite IO resources to be given to Chinese (who have a $4 Trillion = $4,000 Billion cash reserves) for a song.
Also have a read of this article.
http://www.copyright link/p/business/chanticleer/glasenberg_madcap_manoeuvre_rOVhohm8Ki6nWDzM4hVsLJ
But it is completely irrational when considered against the principles of supply and demand.
It is hugely damaging to Australia’s finite reserves of iron ore resources.
The strategy of cranking out iron ore at maximum levels not only threatens to destroy the capital of higher cost producers it simply transfers money into the pockets of the Chinese steel mills.
The obvious alternative to flooding the market with iron ore is to withhold supply, allow prices to rise and leave as much iron ore in the ground as possible.
